In the current cryptocurrency market now, there are five main approaches to buy Bitcoin with cash. As the beginners, you can invest in crypto and Bitcoin (BTC) through crypto exchanges, Bitcoin Exchange-Traded Funds, Peer-to-peer Platforms, Bitcoin ATMs, and Payment Gateways, with either one of these channels, you can easily to buy, sell and invest in Bitcoin as well as other cryptocurrencies.
In this article, we will dive deep into these five approaches to invest in BTC and crypto, how to buy, sell, and invest in Bitcoin for beginners, and where to buy Bitcoin in the USA. Additionally, we will also answer some essential questions like how much is a transaction fee to buy Bitcoin? Is there a fee to cash out Bitcoin? And is Bitcoin a good investment?
However, before we jump into the trading guide, below is a detailed explanation of the five methods to invest in Bitcoin and the benefits of using these methods to buy Bitcoin.
1. Cryptocurrency Exchanges
Crypto exchanges are platforms that enable users to buy, sell, or trade digital assets like Bitcoin for fiat money or other cryptocurrencies. To start your journey of buying and selling Bitcoin or other cryptocurrencies, the first step is to open an account with a reliable exchange. There are two main types of exchanges available for cryptocurrency trading: centralized exchanges (CEX) and decentralized exchanges (DEX)
Centralized Exchanges (CEXs) act as intermediaries, connecting buyers and sellers while securing transactions on their behalf. These exchanges typically require users to complete Know Your Customer (KYC) verification to ensure regulatory compliance and mitigate risks such as money laundering or scams. Popular CEXs include Binance, Bybit, BingX, Kraken, Coinbase, MEXC, and Gemini.
Decentralized Exchanges (DEXs), on the other hand, allow users to swap one digital asset for another directly, without the need for intermediaries. Unlike CEXs, DEXs are permissionless and offer full user control, meaning you can trade anonymously without revealing your personal information. Well-known DEXs include Uniswap, dYdX, PancakeSwap, Hyperliquid, Curve, and Raydium.
Moving on, here are the benefits of using crypto exchanges to buy Bitcoin;
- User-Friendly: Crypto exchanges are easy to use, with many allowing transactions directly with fiat currencies like USD, EUR, or GBP.
- Leverage: Centralized exchanges offer margin trading, enabling users to amplify their investments with borrowed funds.
- Security: Centralized exchanges provide robust security features, including cold storage, address whitelisting, and two-factor authentication (2FA), ensuring your assets are well-protected.
Whether you’re a beginner or an experienced trader, choosing the right exchange is key to a successful trading journey. Start trading today with Binance—one of the most trusted crypto exchanges in the world! Sign up now with our referral code EN2BUBKX to enjoy up to $100 in trading fee rebates and unlock exclusive perks. Don’t miss out—click the button below and begin your crypto journey now!
2. Bitcoin Exchange-Traded Funds
Bitcoin Exchange-Traded Funds or Bitcoin ETFs are investment tools that track the value of Bitcoin, giving investors access to the cryptocurrency without owning Bitcoin. They are a popular choice for buying Bitcoin and other crypto because they offer a more accessible entry point for investors.
Bitcoin ETFs are gaining more traction, as they are listed on major traditional stock exchanges like NASDAQ, the New York Stock Exchange, the Chicago Board Options Exchange, and the Shanghai Stock Exchange.
There are two main types of Bitcoin ETFs: Spot Bitcoin ETFs and Bitcoin futures ETFs. Here’s a breakdown to help you understand how they work.
- Spot Bitcoin ETFs
Spot ETFs hold actual Bitcoins in secure storage, allowing them to closely track the real-time price of Bitcoin. Here, the ETF issues shares representing ownership of the underlying Bitcoins. As the price of Bitcoin fluctuates, so does the value of these shares.
- Bitcoin Futures ETFs
On the flip side, Bitcoin futures ETFs do not hold actual Bitcoins but instead invest in contracts that speculate on the future price of Bitcoin. These contracts allow investors to agree on a price for buying or selling this digital asset at a future date.
Unlike Spot, the value of a Bitcoin futures ETF is obtained from these futures contracts rather than direct ownership of the cryptocurrency. Here are the benefits of investing in Bitcoin through Bitcoin ETFs:
- Accessibility: Ideal for traders who want to avoid the complexities of buying and storing actual BTC on crypto trading platforms.
- Diversify Your Portfolio: Investors can include Bitcoin in their portfolios alongside other assets without directly holding the cryptocurrency.
- Government Regulation: Trading on regulated exchanges offers some protection against fraud and market manipulation. For instance, the U.S. Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs in October 2024 after previously rejecting many applications due to concerns over market manipulation and custodial risks.
These are some of the best brokers you can buy and trade Bitcoin ETFs with: IG, eToro, Interactive Brokers, CMC Markets, and Charles Schwab.
3. Peer-to-Peer (P2P) Trading Platforms
A peer-to-peer (P2P) crypto trading platform is a marketplace that allows users to buy and sell cryptocurrencies directly with each other without an intermediary. Here, buyers and sellers can agree on terms, set prices, choose their preferred payment method, and offset trading fees since they are trading independently.
Here is how the P2P trading would work:
- You create an account on a cryptocurrency exchange or wallet that offers P2P trading like Binance. Then find traders offering to exchange BTC for the Australian Dollar (AUD).
- Suppose you find a trader offering to exchange 0.2 BTC for 37,800 AUD. The buyer (you) will then send a buy request to the seller or post a “buy ad” to make the exchange.
- The platform will create an escrow to hold the seller’s BTC until the seller confirms you have paid the 37,800 AUD into their account.
- Once the seller confirms the transaction, the P2P trading platform will pay 0.2 BTC into your Bitcoin wallet to complete the trade.
Depending on your country, P2P exchanges often support various payment methods, including bank transfers, Western Union, and online payment gateways like Wise and Neteller.
That being said, here are the benefits of using P2P Trading Platforms to buy or invest in Bitcoin:
- Zero Fees: P2P platforms have no transaction fees.
- Choose Who to Buy From: You can choose who to buy Bitcoin from depending on their price, order completion rate, and payment method.
- Payment Options: Users can choose from various payment methods, including direct transfers into your bank account and other digital assets.
Here are some of the best P2P Trading Platforms you can use to buy Bitcoin: Paxful, Hold Hodl, Bisq, and most exchanges, including some on this comprehensive list of the best crypto exchanges in 2025.
4. Bitcoin ATMs
Bitcoin ATMs (Automated Teller Machines) are physical kiosks that allow traders to purchase Bitcoin using cash or debit cards. Some Bitcoin machines are one-way, meaning you can only purchase Bitcoin on them, while others are two-way. You can buy Bitcoin and also sell or withdraw the equivalent of your crypto in fiat money.
How do Bitcoin ATMs work? Bitcoin Teller Machines connect to a cryptocurrency exchange and convert deposited traditional currency into crypto. Below is a step-by-step process on how to use them:
- Download and register on a cryptocurrency wallet. Then, find a crypto ATM near you using online directories.
- Complete the required verification by following the instructions on the ATM screen.
- Scan your Bitcoin wallet QR code, or input the Bitcoin wallet address and private key provided.
- Choose how much crypto you want to buy and insert the equivalent cash amount or use a debit card.
- Once you confirm the transaction, the smart contract will automatically deposit the Bitcoin in your wallet.
These are some of the benefits you can expect when using Bitcoin Teller Machines:
- Security: These ATMs license every transaction to protect your investments and ensure compliance.
- Convenience: Bitcoin ATMs are placed in various public locations, making it easy to buy or sell Bitcoin quickly.
- Many Bitcoin Teller Machines do not require a prior account; you can register instantly and buy BTC.
Companies like Coincloud, Bitcoin Depot, and CoinFlip provide crypto ATMs in various retail locations, enabling traders to purchase Bitcoin with cash.
5. Payment Applications (e.g., PayPal, Cash App, Google Pay)
Buying Bitcoin through payment applications like PayPal, Skrill, and Cash App has become increasingly popular due to their user-friendly interfaces and integrated financial services. They allow users to buy, sell, and transfer Bitcoin through their existing online payment wallet.
However, these platforms have high fees compared to other alternatives. Still, below are the top benefits of using payment applications to buy Bitcoin:
- Speed: Depending on your payment gateway, transactions are usually processed quickly, often within minutes.
- Security: Payment apps use robust security measures, which reduce the risk of fraud compared to traditional exchanges.
- Accessibility: Users can easily buy small amounts of Bitcoin, making it accessible for beginners and casual investors.
You can use these top payment applications you can use to buy Bitcoin: Venmo, PayPal, Cash App, Apple Pay, Skrill, Payeer, Google Pay, and Revolut.
How to Buy, Sell, and Invest in Bitcoin for Beginners in 2025?
The easiest way to buy or invest in Bitcoin for beginners is by registering a new account on a trusted platform like Binance, one of the world’s leading cryptocurrency exchanges. Not only does Binance offer essential tools for trading and access to the vibrant Web3 ecosystem, but as a new user, you’ll also enjoy special rewards. Here’s the exciting part—when you sign up using our referral code EN2BUBKX, you can earn up to $100 in trading fee rebates and unlock exclusive benefits. Don’t miss this opportunity—click the button below to start your cryptocurrency trading journey with Binance today!
Below ere is a step-by-step process on how to buy, sell, and invest in Bitcoin for beginners:
- Step 1: Visit Binance or download the Binance app and register using your email address, mobile phone number, Google account, or Apple ID.
- Step 2: Check the “agree with Binance terms of service and privacy policy” box, and click “Next” to proceed.
- Step 3: Binance will send a verification code to the email or phone number you added. Enter the code number and click Submit.
- Step 4: Create a strong password (at least eight characters, including uppercase letters and numbers).
- Step 5: If you didn’t use the registration link in step one, add this Binance referral code, EN2BUBKX, to get a 20% discount on all transaction fees for a lifetime and a $100 rebate. But if you use the link, the rewards will be added automatically.
Binance will then ask you to complete your verification. Click “Continue” to start the verification process.
Once you finish the KYC verification process, it can take a few to 48 hours to verify your account and be ready for you to start trading.
Now that your account is set, below is a straightforward process on how to buy and sell Bitcoin through Binance:
Buying Bitcoin on Binance
- Deposit funds into your Binance account. You can do this by transferring cryptocurrency from another wallet or using the supported traditional payment methods.
- Click on the “Top Up” option at the top right corner of the home page. Depending on the fiat currency you’re using, select “Buy with AUD,” “Buy with AUD (P2P),” or “Deposit crypto” if you have crypto assets in another exchange or wallet.
- If you wish to buy with fiat, enter the amount you want to spend and use the available payment options. For traders buying through P2P markets, click on “Buy with AUD (P2P)” and follow the prompt.
On the other hand, If you are depositing crypto from another exchange or wallet, click on “Deposit crypto,” then select Bitcoin (BTC) as the cryptocurrency you wish to deposit. The next step is to choose the network, and Binance will provide an address. Copy it and transfer Bitcoin to that particular address.
- Confirm Transaction: Review the details of your purchase and click Confirm. Your Bitcoin will be credited to your Spot Wallet upon completion of the transaction.
Selling Bitcoin on Binance
There are various ways to sell or exchange your BTC for cash on Binance. Here’s a breakdown:
- Spot Trading
Choose a trading pair, say BTC/USDT, set a market or limit sell order, and execute. Once completed, the cash will be credited to your Spot wallet. You can then use P2P to exchange the USDT for your local currency.
- Withdrawing Cash
Click “withdraw” on your Bitcoin wallet page and initiate a withdrawal request for your cash from the Spot wallet to your bank account using the instructions on Binance.
- Trading on Peer to Peer Marketplaces
- Click on the P2P icon on the homepage and select “Sell” to see buyers looking for Bitcoin.
- Select a buyer based on their pricing and order completion rate.
- Specify how much Bitcoin you want to sell and select your preferred payment method.
- After clicking sell, wait for the buyer to send the payment. Once you receive it, confirm it in your bank app, then release the Bitcoin from escrow.
If you would like to learn more about how to trade Bitcoin on Binance, read this Binance review to understand how the platform works and the pros and cons of using it to invest in Bitcoin.
Where to Buy Bitcoin in USA?
The best approach to buy Bitcoin in the USA are cryptocurrency exchanges. They are easily accessible, and you can register and start investing in Bitcoin in five minutes. These are some best crypto exchanges that United States traders can use to buy Bitcoin: Binance.Us, Coinbase, Kraken, Gemini, and Crypto.com.
How Much is a Transaction Fee to Buy Bitcoin?
Depending on the platform, network conditions, and the method you use to buy Bitcoin, transaction fees usually range from 0.10% to 0.60%. In addition, most cryptocurrency exchanges calculate fees in a tiered-level structure based on a percentage of your 30-day trading volume. So, the higher your trading volume, the lesser your margin and spot trading fees.
Is There a Fee to Cash Out Bitcoin?
Yes, there is a fee to cash out Bitcoin. However, the amount you will be charged depends on the platform you use and the Blockchain network.
Is Bitcoin a Good Investment?
Bitcoin is a potentially lucrative investment due to its historical price increases and position as the most valuable cryptocurrency. However, it remains highly volatile and risky. We do not give investment advice, but if you are investing in Bitcoin, always prepare for downtimes or huge losses in spot or futures markets.
